Seaspan Redux

Last week we published an article on Seaspan’s $200 million preferred issue and were asked to clarify some of the points made in it.

Most importantly, the transaction was internally generated and there was no real or implied pressure from Seaspan’s bankers to do this transaction. The company felt it was prudent in today’s environment to bring on more equity and not hope for better markets to raise public equity as long as it was well priced and favorable to its shareholders. Moreover, the trade off for the dilution five years out made sense.

Proving that they did not need the money today, the deal was done in two tranches and achieved better than market terms.

Due to the involvement of insiders, the transaction was reviewed by

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